SHENZHEN, China, Sept. 5, 2024 /PRNewswire/ -- Taoping Inc. (NASDAQ:TAOP, the ", Company", )), a provider of innovative smart cloud platform services and solutions, new media and artificial intelligence (AI) solutions, today reported a 28.4% year over year revenue growth to $18.1 million for the six months ended June 30, 2024, with a significant improvement in profitability as the Company delivered net income of $0.13 per diluted share, compared to a net loss of $1.10 per diluted share in the same period of last year.
Taoping's strong first half 2024 results were driven by increased demand for its cutting-edge Smart City products and solutions enabled by Taoping's national sales network and scalable, compatible cloud platform. The Company's integrated ecosystem solutions seamlessly combine its robust technology platform, resource exchange mechanisms, and big data services.
Mr. Jianghuai Lin, Chairman and CEO of Taoping, commented, "We continue to execute on our business strategy, with a focus on driving revenue growth and improving profitability. Our expanded product lines and diversified applications, combined with the rebounding broader market customer demand, helped us deliver a 28.4% year over year revenue growth for the first six months of 2024. We are particularly pleased with the improvement in our net income per diluted share, which jumped to $0.13 from a net loss per diluted share of $1.10 in the first half of 2023, as we benefit from an accelerating growth in our higher margin products and software solutions."
"While we are devoting additional resources to support higher demand for our cutting-edge Smart City products and solutions, our digital advertising, other cloud-based and core AI-related products and applications have all been positive drivers, led by Taoping's extensive sales network throughout China and our highly scalable and compatible cloud platform. Our Smart City products and solutions were specifically designed to remove technical challenges and resource constraints to help customers operate in this new AI-dependent world. This approach gives us a meaningful competitive advantage and confidence as we focus on our continued growth and innovation to generate higher value for shareholders that aligns with our business fundamentals and catalysts."
Select Financial Results for the Six Months Ended June 30, 2024
Revenue was $18.1 million for the first six months of 2024, compared to $14.1 million for the same period of last year, an increase of $4.0 million, or 28.4%. The increase was primarily due to an increase of $3.2 million from product sales of servers, cloud-based screens and terminals, an increase of $1.3 million in advertising revenue, and an increase of $0.2 million in software revenue, offset by a decrease of $0.7 million in other revenue. The Company expects that revenue for the second half of 2024 will increase slightly as a result of the growth in the advertising business, as well as in product sales of its cloud-based screens, terminals, and new applications.
Cost of revenue was $13.9 million for the six months ended June 30, 2024, compared to $10.2 million for the same period of 2023. As a percentage of revenue, cost of revenue increased to 77.1% for the first six months of 2024, from 72.5% for the same period of 2023.
Gross profit as a percentage of revenue was 22.9% for the first six months ended June 30, 2024 compared to 27.5% for the same period of 2023. The increase in overall gross profit was in line with the increase of total revenue. The decrease in overall gross margin primarily resulted from the decreased margin of the advertising business. The Company expects that gross margin for the remainder of 2024 will be consistent with that for the first half of the year.
Net profit attributable to the Company was $0.6 million or net income of $0.13 per diluted share for the first six months of 2024, compared to a net loss of $1.8 million or a loss of $1.10 per diluted share for the same period of last year.
About Taoping Inc.Taoping Inc. (Nasdaq: TAOP) has a long history of successfully leveraging technology in the development of innovative solutions to help customers in both the private and public sectors to more effectively communicate and market to their desired targets. The Company has built a far-reaching city partner ecosystem and comprehensive portfolio of high-value, high-traffic areas for its products, which are aligned together with Taoping's smart cloud platform, cloud services and solutions, new media and artificial intelligence. For more information about Taoping, please visit http://en.taop.com. You can also follow us on X.
Safe Harbor StatementThis press release contains "forward-looking statements" that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this press release, such as statements regarding our estimated future results of operations and financial position, our strategy and plans, and our objectives or goals, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. We have attempted to identify forward-looking statements by terminology including "anticipates," "believes," "can," "continue," "could," "estimates," "expects," "intends," "may," "plans," "potential," "predicts," "should," or "will" or the negative of these terms or other comparable terminology. Our actual results may differ materially or perhaps significantly from those discussed herein, or implied by, these forward-looking statements. There are a significant number of factors that could cause actual results to differ materially from statements made in this press release, including: our potential inability to achieve or sustain profitability or reasonably predict our future results, the effects of the global Covid-19 pandemic or other health crisis, the emergence of additional competing technologies, changes in domestic and foreign laws, regulations and taxes, uncertainties related to China's legal system and economic, political and social events in China, the volatility of the securities markets; and other risks including, but not limited to, those that we discussed or referred to in the Company's disclosure documents filed with the U.S. Securities and Exchange Commission (the "SEC") available on the SEC's website at www.sec.gov, including the Company's most recent Annual Report on Form 20-F as well as in our other reports filed or furnished from time to time with the SEC. The forward-looking statements included in this press release are made as of the date of this press release and the Company undertakes no obligation to publicly update or revise any forward-looking statements, other than as required by applicable law.
TAOPING INC.
(F/K/A CHINA INFORMATION TECHNOLOGY, INC.)
CONSOLIDATED BALANCE SHEETS
JUNE 30, 2024 AND DECEMBER 31, 2023
June 30, 2024
December 31, 2023
(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
480,300
$
1,300,855
Accounts receivable, net
7,436,851
8,063,280
Accounts receivable-related parties, net
243,186
630,775
Advances to suppliers
15,041,800
12,015,810
Prepaid expenses
148,782
349,558
Inventories, net
3,218,169
1,250,567
Other current assets
881,179
1,640,070
TOTAL CURRENT ASSETS
27,450,267
25,250,915
Property, equipment and software, net
6,130,763
6,677,484
Long-term investments
139,145
86,889
Other assets, non-current, net
359,519
811,026
TOTAL ASSETS
$
34,079,694
$
32,826,314
LIABILITIES AND EQUITY
